A great education is key to your success. Sadly, the cost of education these days keeps many people from attending. If you have worries about paying for college, then you can benefit from this article that will inform you about student loans. Keep reading and you’ll be able to get into a school!
Keep in contact with the lender. Update your address, phone number or email address if they change which sometimes happens quite frequently during your college days. Do not put off reading mail that arrives from the lender, either. You need to act immediately if a payment is needed or other information is required. If you miss something, it could cost you more.
Pay your loan off in two steps. First you need to be sure that you know what the minimum payments for the loans will be each month. Second, make extra payments on the loan whose interest rate is highest, not the loan that has the largest balance. This will reduce your spending in the future.
Focus initially on the high interest loans. If you pay off the wrong loans first, you could end up paying more than you need to.
Be aware of the amount of time alloted as a grace period between the time you complete your education and the time you must begin to pay back your loans. Stafford loans typically give you six months. Perkins loans give you nine months. Grace periods for other loans vary. Be sure you know exactly when you will be expected to begin paying, and don’t be late!
Student Loans
Pick out a payment option that you know can meet the needs you have. Many student loans offer 10-year payment plans. If that doesn’t work for you, some other options may be out there for you. For instance, you could be given more time but have to pay more interest. You can pay a percentage once the money flows in. There are even student loans that can be forgiven after a period of twenty five years passes.
Choose the right payment option for you. Most student loans have a ten year plan for repayment. There are other options if this doesn’t work. For instance, you might secure a longer repayment term, but you will end up paying more in interest. You could also make payments based on your income. It may be that your loan will be forgiven after a certain period of time as well.
Take the maximum number of credit hours you can in your schedule to maximize the use of your loans. To be considered a full-time student, you usually have to carry at least nine or 12 credits, but you can usually take as many as 18 credit each semester, which means that it takes less time for you to graduate. This will keep your loans to a minimum.
Stafford and Perkins are the best loan options. These have some of the lowest interest rates. One of the reasons they are so popular is that the government takes care of the interest while students are in school. The Perkins loan has an interest rate of five percent. The Stafford loans are a bit higher but, no greater than 7%.
PLUS loans are available if you are a graduate student or the parent of one. Their interest rate does not exceed 8.5%. Although this rate is higher than that of the Perkins and Stafford loans, it is lower than the rates charged for private loans. This is the best option for mature students.
As previously stated, many people want a good education, but it’s hard when the costs are so high. You no longer have to fret about funding your college education. Keep these tips in mind when you go to apply for your student loans.
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